"Apollo Global Management could grant a $3.4 billion loan to an investment vehicle that buys Nvidia chips to lease to Elon Musk's xAI at any moment. Less than a week ago, Musk announced that SpaceX is acquiring xAI. The deal values the rocket-and-satellite company at $1 trillion and the AI startup at $250 billion. Musk says that combining SpaceX and xAI is partly about developing data centers in space. These would use space-based infrastructure to support the next generation of AI computing."
"Leasing chips and compute infrastructure allows AI startups such as xAI to scale rapidly. Capital that would otherwise be tied up in costly hardware purchases remains available for other investments. For xAI, this is crucial in the battle against established players OpenAI and Anthropic. The financing is structured as a triple-net lease to support one of the world's largest compute clusters for AI model training. Nvidia itself is also participating as an anchor investor in the investment vehicle, underscoring the strategic value of the construction."
Apollo Global Management is preparing a possible $3.4 billion loan to an investment vehicle that will buy Nvidia chips to lease to xAI. Valor Equity Partners is arranging the financing, which follows Apollo's similar $3.5 billion loan in November. SpaceX is acquiring xAI in a deal valuing SpaceX at $1 trillion and xAI at $250 billion, with plans to develop space-based data centers. The financing is structured as a triple-net lease to support one of the world's largest AI training compute clusters, with Nvidia participating as an anchor investor. Leasing preserves capital and enables rapid scaling against competitors.
Read at Techzine Global
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